POLITICO California Playbook PM: Why tech and trucks are hitting a wall in California

Your afternoon must-read briefing on politics and government in the Golden State

Jun 21, 2023 View in browser   By Wes Venteicher LONG HAUL: The trucking industry wants California to be like Texas. Or maybe Nebraska. Or, for that matter, like any of at least five states that have rejected proposals to require a human on board all self-driving trucks — which the tech industry hopes will be rolling down roads in the not-too-distant future. California, so far, is saying no way. Legislation that would require humans on board easily passed in the Assembly last month and is now coming up in the Senate. Fierce lobbying is underway. The Autonomous Vehicle Industry Association, representing both tech and trucking, is trying to make the case that the robots don’t need a human minder, and they’ve been able to persuade other states to agree. “We’ve been very successful in beating these back in several states this past legislative session and we’re continuing to make the case in California,” said Jeff Farrah, the association’s executive director. California wants limits on autonomous trucks for two main reasons. One is that the powerful Teamsters union is strongly opposed to cutting humans out of a field that employs more than 3 million people in relatively well-paid positions. The other is safety: Lawmakers, like a lot of other folks, are uneasy with the prospect of 80,000 pounds of steel and merchandise hurtling down I-5 with no one on board. Count Assemblymember Laura Friedman among those who remain unconvinced by the industry, pointing to lingering doubts about self-driving vehicles in California and elsewhere. “People just want to know the technology is safe before it goes into the largest, heaviest vehicles without a driver,” said Friedman, who chairs the Assembly Transportation Committee. AB 316, which would require humans on board and includes Friedman in a long list of cosponsors, cleared the Assembly on a 69-4 vote and is scheduled for a hearing in the Senate Transportation Committee on July 11. The trucking and tech companies behind autonomous vehicles are making the case that California — where California-based Waymo and Cruise operate self-driving taxis in San Francisco — could be left behind as the rest of the country embraces the new technology. They’re up against the Teamsters, which has made the California proposal its top priority, said Jason Rabinowitz, president of the union’s chapter in Northern California and Nevada. “The public recognizes that the technology’s not ready for prime time,” Rabinowitz said. “We’ve seen these robot taxis interfering with emergency vehicles and unfortunately ran over some people’s dogs.” Rabinowitz said passage of the California bill could prompt other states to follow suit with similar bans. Other states are allowing testing, but autonomous trucks are not yet in regular use without humans on board. AB 316 would allow companies to test self-driving trucks with humans on board on public roads and without humans on private roads, but the DMV is still working on regulations. The Legislature is advancing its legislation on heavy-duty trucks amid mistrust of the DMV’s regulatory process. “There’s some dispute about whether the DMV has been a little too lenient with some of the marketing claims made by some of the companies and their abilities,” Friedman said. The Legislature may revisit the subject of self-driving trucks as more evidence emerges. “We all need to feel more confident before we just throw the doors open,” she said. HAPPY WEDNESDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to ‎wventeicher@politico.com or send a shout on Twitter. DMs are open!   JOIN US TONIGHT! Think you know a lot about politics? PROVE IT! Compete in California Playbook’s inaugural Trivia Night. Grab a drink, kick back, and put your knowledge on display! Join top political power players on Wednesday, June 21st at Fox & Goose Public House for a night of fun and competition that you won’t want to miss. REGISTER HERE.      WHAT YOU NEED TO KNOW TODAY After a rocky start, Gov. Gavin Newsom and President Joe Biden — and their staffs — are closely coordinating again. They are “lifting each other up,” as one presidential aide put it following their series of events and fundraisers in the Bay Area this week. At a fundraiser in Marin County on Tuesday, Newsom lavished the president with praise. “I am here, Mr. President, as a proud American, as a proud Californian, mesmerized by not just your faith and devotion to this country, and the world we’re trying to build, but by your results, by your action, by your passion, by your capacity to deliver,” he said. Christopher Cadelago has more on the dynamic between the White House and Sacramento. ON THE BEATS SHOW-STOPPER: Thousands of blue-shirted Hollywood writers and supporters left picket lines in front of studio lots today and marched to the La Brea Tar Pits, as negotiations between the Writers Guild of America and a group of major studios and streaming platforms remain at a standstill. The two sides have not returned to the negotiating table since talks broke down on May 1, a day before writers walked off the job, grinding production of many shows and movies to a halt. The fallout from the work stoppage is starting to be felt throughout the Hollywood ecosystem, as studios have begun laying off staff, including janitors. Neither side has shown a willingness to concede on major sticking points around issues of pay and artificial intelligence, with studio leaders refusing to guarantee that writers won’t be replaced by technology like ChatGPT. “They declared on Hollywood labor, and it is a war they are going to get, I promise you,” said Lindsay Dougherty, director of the Teamsters Motion Picture Division, as she spoke to the crowd at the Tar Pits. The Alliance of Motion Picture and Television Producers, which represents the studios, reached a deal with the Directors Guild of America this month that includes wage increases and an agreement that directors can’t be replaced by artificial intelligence. AMPTP started contract talks on June 7 with SAG-AFTRA, which represents 160,000 actors, but information has been scant as both sides announced a media blackout. — Alexander Nieves PENALTY BOX: Six communities in the San Joaquin Valley are trying to get out of trouble with the state’s groundwater regulator. The Department of Water Resources determined in March that all six failed to develop adequate plans to protect the critically overdrafted groundwater in those basins — an essential resource in recent dry periods. The agencies that manage groundwater in those areas submitted new plans that were supposed to provide convincing strategies to safeguard the water. Today, the State Water Resources Control Board said no. Despite requests by some of the local managers for more time to correct their plans, state water officials will begin taking over management of the basins. Eventually, they could impose fees or ban new wells. — Camille von Kaenel NO LONGER NO. 1: California lost one of its most notorious distinctions today — gas in the state is no longer the most expensive in the nation. Washington took the top spot with an average price of $4.93 per gallon — about 7 cents higher than in California, according to AAA’s price tracker. Newsom declared war on Big Oil last year after fuel prices climbed above $6 per gallon, reaching new highs while oil companies reaped record profits. His campaign resulted in new price-reporting requirements for the oil industry that could lead to a penalty on companies’ profits. Newsom’s allies in the effort suggested the rules themselves could help keep prices low by deterring companies from more price hikes — a proposition that could be tested amid the summer’s usual price spikes.   SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don’t miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.     AROUND CALIFORNIA “Millennium Tower: Engineer says $100 million fix has improved S.F. building’s famous lean,” by the San Francisco Chronicle’s J.K. Dineen: All 18 of the concrete piles meant to stabilize San Francisco’s famously leaning and sinking Millennium Tower have now been driven into bedrock, completing the $100 million fix of the luxury condo high-rise, according to the engineer overseeing the project. “LAUSD’s $18.8-billion budget is flush with COVID-19 funds for one more year, but then what?” by the Los Angeles Times’ Howard Blume: Schools Supt. Alberto Carvalho said the district is prepared to manage the transition without layoffs — and he also pledged improved student support through lower class sizes, additional counselors and increased mental health services. But Carvalho added there will be “pain” for employees. “Fact check: Does California’s middle class pay less in taxes than in other states?” by The Fresno Bee’s David Lightman: California’s income, sales and excise and property taxes on middle class residents can be viewed as less than in many states. But it depends on how one defines “middle class.” And ”tax burden”— is it measured by the rate of taxation or the amount one pays? MIXTAPE “Hotel guests sue Marriott, saying Los Angeles locations charge ‘junk’ fee” by The Wall Street Journal’s Suryatapa Bhattacharya. “Ron DeSantis posts video from S.F. street corner, says liberals have failed ‘once great city,’”  by the San Francisco Chronicle’s Jordan Parker.   Follow us on Twitter Katy Murphy @katymurphy POLITICO California @politicoca   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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